The major market indexes closed near session highs after the Federal Reserve left interest rates unchanged despite a pickup in the U.S. economy. Oil surged, while earnings beats fueled big moves by FedEx (FDX) and Adobe Systems (ADBE).
The Nasdaq rose 1%, hitting a record high. The S&P 500 gained 1.1% and the Dow Jones industrial average added 0.9%. Volume really picked up the pace and was higher across the board vs. the same time Tuesday.
"The Committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives," the Fed said in its statement.
Airfreight transporters, oil and desktop software makers led the upside in the stock market today, but biotechs, other medicals and movie-related stocks underperformed. West Texas intermediate crude oil settled at $45.34 a barrel, up $1.29 or 2.9%, as weekly crude inventories fell by 6.2 million barrels.
FedEx gapped up and soared 6.9% to a 52-week high in fast turnover. After the close Tuesday, the package shipper delivered fiscal Q1 results that topped views on both the top and bottom lines.
Adobe gapped up and surged 7.1% to a record best. It's now extended from a pullback to the 50-day moving average. The desktop software maker reported quarterly results late Tuesday that beat views and boosted its Q4 EPS guidance above Street forecasts.
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Netflix (NFLX) tumbled 3.4%, falling below its 50-day line in heavy trade. The media streaming company will likely miss Q3 subscriber targets as churn rises, according to an M Science report. Shares are also below the 200-day line and are 29% off their 52-week high.
Among IBD 50 stocks, top gainers included Alibaba Group (BABA), up 4.5% in above-average volume. Shares of the Chinese internet retailer are extended more than 20% from 85.10 handle buy point cleared Aug. 10, in profit-taking range. Most stocks tend to pause after a 20% to 25% advance, so it may be a good time to lock in some gains.
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